'Tsunami of bad news' hits UK market
A “tsunami of bad news” hit world markets today as fears over the viability of the eurozone rescue package and the health of the financial sector caused traders to sell shares.
The FTSE 100 Index in London fell 2.8%, or 158 points at 5544.2, with taxpayer-backed lenders Royal Bank of Scotland and Lloyds among the biggest fallers.
Traders were spooked amid reports that the Chinese government may not contribute as much money to the one trillion euro bailout fund as previously hoped, in a move that threatens to derail the recent rescue package.
And there were signs of fresh chaos in the financial sector, as international broker MF Global, which employs some 700 people in London, looks for a buyer amid fears it will collapse as a result of its exposure to eurozone debts.
A downgrade for the economic growth forecasts of the US and Europe by respected think-tank the Organisation for Economic Co-operation and Development added to the malaise.
